Ways to Invest in Gold in Korea: Taxes and Costs of the KRX Gold Market, Gold ETFs, Gold Banking and Gold Bars

The won price of gold comes from two numbers

The international gold price is usually quoted in dollars per troy ounce (31.1035 g) on the New York futures market. The price Koreans feel is that figure multiplied by the dollar-won exchange rate, and the don commonly used in Korea is 3.75 g. So the won price of gold moves as the product of two numbers: the international price and the exchange rate. If the international price rises 5% while the won strengthens 5% against the dollar over the same period, the won price barely moves; if the international price stays flat but the dollar rises against the won, the won price goes up. Keeping the two apart when choosing how to invest helps you tell whether returns came from gold itself or from the currency. Gold pays no interest or dividends, so returns come only from price changes.

The KRX Gold Market

The KRX Gold Market is a spot gold market opened by the Korea Exchange on 24 March 2014. You open a gold spot account at a brokerage and trade 99.99% pure gold in 1 g units like a stock; trading hours match the stock market's regular session, 9:00 a.m. to 3:30 p.m., and the daily price limit is ±10% of the reference price. The gold you buy is held in custody by the Korea Securities Depository. On tax, on-exchange trades are exempt from VAT (Restriction of Special Taxation Act, Article 126-7), and individuals' trading gains are not among the income types listed as taxable, so they are untaxed and do not count toward financial income. However, physical gold can be withdrawn only in 100 g or 1 kg units, with 10% VAT and a withdrawal fee. At times of heavy domestic demand, KRX gold has traded well above the won-converted international price, prompting the exchange to urge caution, so compare the two before buying.

• Trading: brokerage gold spot account, 1 g units
• Tax: no VAT on on-exchange trades; individuals' gains untaxed
• Withdrawal: 100 g or 1 kg units, 10% VAT plus fees
• Check: the premium over the converted international price

Gold ETFs

ETFs tracking gold futures or spot gold are listed on the Korean market and can be bought straight from a stock account. For Korea-listed gold ETFs, trading gains and distributions count as dividend income with 15.4% withheld, and if financial income including interest and dividends exceeds 20 million won in a year, it becomes subject to comprehensive taxation. A unique advantage is that they can be held in tax-advantaged accounts such as pension savings, individual retirement pensions (IRP) and ISAs to defer or reduce tax. Products tracking futures incur costs from rolling into the next contract at each expiry, so they can drift from the spot price over time, and currency hedging changes the exchange-rate effect. Gold ETFs listed in the US are treated like foreign shares: 22% capital gains tax after the annual 2.5 million won deduction.

• Korea-listed: 15.4% on gains and distributions, counted in financial income
• Can be held in tax-advantaged accounts
• Futures-based products have roll costs; check currency hedging
• US-listed: 22% after the 2.5 million won deduction

Gold banking (gold accounts)

A bank's gold banking product credits gold by weight at the price the bank posts that day whenever you deposit won. It is convenient for small, frequent deposits, but the gap between the bank's buying and selling prices is generally wider than on the KRX Gold Market. Gains when you sell have 15.4% dividend income tax withheld and count toward financial income. It is a performance-based product rather than a deposit, so it is not covered by deposit insurance, and taking physical gold incurs 10% VAT and fees. Fees and how posted prices are set vary by bank, so read the product terms.

Gold bars and jewellery

The defining feature of gold bars or rings is that you can hold them. In exchange, you pay 10% VAT when buying, plus making costs and dealer margins, so you buy well above the converted international price. When selling you get the buyer's purchase price, so the gap between buying and selling prices is larger than with other methods. Gains from selling gold an individual has held are generally not subject to income tax, though repeated buying and selling as a business may be treated differently. Storage, theft risk and checking for counterfeits are also costs of physical gold. Jewellery carries large workmanship charges, so for investment purposes it is best considered separately from pure gold bars.

Side-by-side comparison

The same gold can carry quite different taxes and costs depending on the wrapper. On tax alone, the KRX Gold Market is lightest; if you must hold physical gold, bars fit; and if you want to use tax-advantaged accounts, Korea-listed gold ETFs fit. With any method, falling gold prices and exchange rates mean losses. Below are the typical differences as of October 2026.

• KRX Gold Market: no VAT on trades, untaxed gains, 10% VAT on withdrawal
• Korea-listed gold ETF: 15.4% on gains, counted in financial income, usable in tax-advantaged accounts
• Gold banking: 15.4% on gains, no deposit insurance, wide spread
• Gold bars: 10% VAT and margins on purchase; sale gains generally untaxed

How gold moves against other assets

Gold has a strong image as a crisis asset, but in practice there have been periods when it rose with stocks and periods when it fell with them. The tendency of the dollar and US real interest rates to move opposite to gold is often cited, yet that relationship also weakens or reverses depending on the period. For Korean investors there is one more factor: gold is a dollar asset. If the won weakens in a crisis, the won price of gold can rise even when the international price is flat. Those seeking diversification often set a gold weight and periodically rebalance back to it; the logic is covered in the guides on correlation between assets and on rebalancing.

Checking with this site's tools

The Today's Gold Price tool converts international gold and silver prices (New York front-month futures) and the dollar-won rate into won prices per don, gram and ounce, updating every 60 seconds, and splits the daily change into the part from gold and the part from the exchange rate. It also shows a 10-year won gold chart, returns by period and the value of 18K and 14K gold. The figures are converted international prices before tax and fees, so they differ from KRX Gold Market or jeweller prices. Use the Today's Exchange Rates tool for the currency side, and the correlation tool to see how closely gold has recently moved with stocks, the dollar and bitcoin.

Limits and disclaimer

The taxes and rules here summarise the Restriction of Special Taxation Act, the Income Tax Act and general guidance from the exchange and financial firms as of October 2026; fees and handling differ by product and firm, and rules can change. No one can know in advance where gold prices will go, and because gold pays no interest there have been long periods when it went nowhere or fell. This guide explains how the investment methods are structured; it does not recommend buying gold or any product and is not investment advice.